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Re: pual post# 11841

Wednesday, 08/09/2006 1:03:10 PM

Wednesday, August 09, 2006 1:03:10 PM

Post# of 19549
Why do we always see shiny press releases flaunting about how Revenues are on the rise but the stock performance is the exact opposite?

Can anyone explain this without accusing the company or Matin negatively of any sort of scam?

Rawnut thinks this is a scam. If this is true than noone seems to be buying into the so-called scam, right? If it were a scam, the incentive would be to make the stock rise along with the "good news" because the insiders holding stock would be losing on their shares that they own if the stock price decreased. (Yes I understand the idea that maybe the company needs money to keep afloat - that's another theory as well, but remember that the insiders in the company most likely own much more than all of us combined - it is to their benefit to see a rising share price.)

If the company was in desperate need for money, we'd see much higher volumes for much more cash infusion, right? Unless, the company is gradually dumping shares to "squeeze water from a rock".

MOST LIKELY SCENARIO:
It seems that the selling is due to margin calls (investors being forced to sell to pay debt). These investors are most likely involuntarily selling at these low prices.

Is it really fair to panic when the volume is so low?